Wednesday, April 30, 2025
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Michael Kupinski, Director of Research, Equity Research Analyst, Digital, Media & Technology , Noble Capital Markets, Inc.
Jacob Mutchler, Research Associate, Noble Capital Markets, Inc.
Refer to the full report for the price target, fundamental analysis, and rating.
Reports solid Q1 results. Q1 revenues accelerated, up 5.3%, from the 2.2% decline in the fourth quarter, reflecting the early adoption of the company’s transformative migration toward a subscription model. Results were in line with expectations, with adj. EBITDA of $4.4 million and positive free cash flow generation of $3.3 million.
Revenues expected to accelerate. Management indicated that second quarter revenue growth is expected to accelerate, double the rate of the first quarter’s 5.3%. The enhanced revenue growth reflects the success of converting legacy subscribers to a paid subscription. The paid subscription began in the first quarter of 2025, with subscription revenues recognized pro-ratably over the subscription period. As such, we expect that revenue growth will accelerate as it adds subscriptions throughout the year.
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This Company Sponsored Research is provided by Noble Capital Markets, Inc., a FINRA and S.E.C. registered broker-dealer (B/D).
*Analyst certification and important disclosures included in the full report. NOTE: investment decisions should not be based upon the content of this research summary. Proper due diligence is required before making any investment decision.